Over the last decade, Chile saw a strong push for renewables-based power generation, and in particular of solar PV and wind technologies. This resulted in an overall increase of the renewables share in total power generation of more than 8 percentage points, about twice the increase of overall electrification. Nonetheless, this strong increase of renewable generation was also accompanied by increasing coal-fired generation, leading CO2 emissions intensity of power generation in 2020 to still be somehow higher than in 2010.
In 2015 Chile adopted a National Energy Policy 2050 (Government of Chile, 2016, 2022) and set a goal of net zero emissions by 2050. Reaching this goal will require intermediate steps, with ambitious decarbonisation and electrification targets. The country will therefore need to step up efforts, in particular in the transport sector and further electrifying the industrial sector (see the red flag in Table 5.3.A), while reducing coal-fired generation and therefore changing direction and decreasing significantly the CO2 intensity of power generation. Replacing the inefficient use of bioenergy with more modern uses will also play a role in the space-for-action for electrification in the buildings sector, allowing for a larger potential to be utilised.